Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 24, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | MEDP | |
Entity Registrant Name | Medpace Holdings, Inc. | |
Entity Central Index Key | 0001668397 | |
Entity Current Reporting Status | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 35,374,485 | |
Entity File Number | 001-37856 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 32-0434904 | |
Entity Address, Address Line One | 5375 Medpace Way | |
Entity Address, City or Town | Cincinnati | |
Entity Address, State or Province | OH | |
Entity Address, Postal Zip Code | 45227 | |
City Area Code | 513 | |
Local Phone Number | 579-9911 | |
Security Exchange Name | NASDAQ | |
Title of 12(b) Security | Common Stock $0.01 par value | |
Entity Interactive Data Current | Yes | |
Document Quarterly Report | true | |
Document Transition Report | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 133,999 | $ 131,920 |
Accounts receivable and unbilled, net (includes $2.8 million and $1.9 million with related parties at March 31, 2020 and December 31, 2019, respectively) | 136,374 | 155,662 |
Prepaid expenses and other current assets | 32,629 | 29,446 |
Total current assets | 303,002 | 317,028 |
Property and equipment, net | 50,015 | 47,292 |
Operating lease right-of-use assets | 58,667 | 52,152 |
Goodwill | 662,427 | 662,396 |
Intangible assets, net | 52,353 | 54,350 |
Deferred income taxes | 490 | 376 |
Other assets | 10,680 | 9,477 |
Total assets | 1,137,634 | 1,143,071 |
Current liabilities: | ||
Accounts payable (includes $0.1 million and $0.2 million with related parties at March 31, 2020 and December 31, 2019, respectively) | 16,985 | 22,404 |
Accrued expenses | 107,005 | 109,252 |
Advanced billings (includes $1.1 million and $3.0 million with related parties at March 31, 2020 and December 31, 2019, respectively) | 189,562 | 192,359 |
Other current liabilities | 25,099 | 18,987 |
Total current liabilities | 338,651 | 343,002 |
Operating lease liabilities | 51,395 | 45,212 |
Deferred income tax liability | 14,022 | 12,849 |
Other long-term liabilities | 15,767 | 15,725 |
Total liabilities | 419,835 | 416,788 |
Commitments and contingencies (see Note 11) | ||
Shareholders’ equity: | ||
Preferred stock - $0.01 par-value; 5,000,000 shares authorized; no shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively | 0 | 0 |
Common stock - $0.01 par-value; 250,000,000 shares authorized at March 31, 2020 and December 31, 2019, respectively; 35,484,473 and 36,065,278 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively | 355 | 360 |
Treasury stock - 200,000 shares at March 31, 2020 and December 31, 2019, respectively | (6,030) | (6,030) |
Additional paid-in capital | 673,372 | 666,585 |
Retained earnings | 53,831 | 68,109 |
Accumulated other comprehensive loss | (3,729) | (2,741) |
Total shareholders’ equity | 717,799 | 726,283 |
Total liabilities and shareholders’ equity | $ 1,137,634 | $ 1,143,071 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, unbilled services with related parties | $ 2.8 | $ 1.9 |
Accounts payable includes related parties | 0.1 | 0.2 |
Advanced billings with related parties | $ 1.1 | $ 3 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock shares authorized | 5,000,000 | 5,000,000 |
Preferred stock shares issued | 0 | 0 |
Preferred stock shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock shares authorized | 250,000,000 | 250,000,000 |
Common stock shares issued | 35,484,473 | 36,065,278 |
Common stock shares outstanding | 35,484,473 | 36,065,278 |
Treasury stock shares | 200,000 | 200,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | ||
Revenue, net (includes $5.5 million and $5.1 million with related parties for the three months ended March 31, 2020 and 2019, respectively) | $ 230,879 | $ 200,741 |
Operating expenses: | ||
Direct service costs, excluding depreciation and amortization | 88,795 | 75,109 |
Reimbursed out-of-pocket expenses | 77,006 | 70,594 |
Total direct costs | 165,801 | 145,703 |
Selling, general and administrative | 25,124 | 21,308 |
Depreciation | 2,453 | 1,991 |
Amortization | 1,997 | 5,844 |
Total operating expenses | 195,375 | 174,846 |
Income from operations | 35,504 | 25,895 |
Other income (expense), net: | ||
Miscellaneous income (expense), net | 617 | (282) |
Interest income (expense), net | 357 | (955) |
Total other income (expense), net | 974 | (1,237) |
Income before income taxes | 36,478 | 24,658 |
Income tax provision | 7,524 | 5,460 |
Net income | $ 28,954 | $ 19,198 |
Net income per share attributable to common shareholders: | ||
Basic | $ 0.80 | $ 0.54 |
Diluted | $ 0.76 | $ 0.51 |
Weighted average common shares outstanding: | ||
Basic | 36,024 | 35,698 |
Diluted | 38,030 | 37,285 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue Net | ||
Revenue with related parties | $ 5.5 | $ 5.1 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net income | $ 28,954 | $ 19,198 |
Other comprehensive income | ||
Foreign currency translation adjustments, net of taxes | (988) | (274) |
Comprehensive income | $ 27,966 | $ 18,924 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands | Total | Common Stock | Treasury Stock | Additional Paid-in Capital | (Accumulated Deficit) Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Impact to Retained Earnings from adoption of ASU 2016-02 | ASU 2016-02 | $ 9,153 | $ 9,153 | ||||
Balance | 598,856 | $ 356 | $ (6,030) | $ 639,381 | (32,334) | $ (2,517) |
Balance at Dec. 31, 2018 | 589,703 | 356 | (6,030) | 639,381 | (41,487) | (2,517) |
Net income | 19,198 | 19,198 | ||||
Foreign currency translation | (274) | (274) | ||||
Stock-based compensation expense | 3,183 | 3,183 | ||||
Stock options exercised | 934 | 1 | 933 | |||
Balance at Mar. 31, 2019 | 621,897 | 357 | (6,030) | 643,497 | (13,136) | (2,791) |
Balance at Dec. 31, 2019 | 726,283 | 360 | (6,030) | 666,585 | 68,109 | (2,741) |
Net income | 28,954 | 28,954 | ||||
Foreign currency translation | (988) | (988) | ||||
Stock-based compensation expense | 5,445 | 5,445 | ||||
Stock options exercised | 1,343 | 1 | 1,342 | |||
Repurchases of common stock | (43,238) | (6) | (43,232) | |||
Balance at Mar. 31, 2020 | $ 717,799 | $ 355 | $ (6,030) | $ 673,372 | $ 53,831 | $ (3,729) |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 28,954 | $ 19,198 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 2,453 | 1,991 |
Amortization | 1,997 | 5,844 |
Stock-based compensation expense | 5,445 | 3,183 |
Amortization of debt issuance costs and discount | 0 | 138 |
Noncash lease expense | 2,917 | 2,363 |
Deferred income tax provision | 1,079 | 656 |
Amortization and adjustment of deferred credit | (181) | (200) |
Other | (67) | (43) |
Changes in assets and liabilities: | ||
Accounts receivable and unbilled, net | 19,301 | 4,255 |
Prepaid expenses and other current assets | (2,694) | (1,642) |
Accounts payable | (6,809) | (2,684) |
Accrued expenses | (1,757) | (5,221) |
Advanced billings | (2,695) | 2,437 |
Lease liabilities | (2,236) | (2,041) |
Other assets and liabilities, net | 3,441 | 5,771 |
Net cash provided by operating activities | 49,148 | 34,005 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Property and equipment expenditures | (5,561) | (2,520) |
Other | 39 | (1,322) |
Net cash used in investing activities | (5,522) | (3,842) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from stock option exercises | 1,331 | 972 |
Repurchases of common stock | (41,776) | 0 |
Payment of debt | 0 | (24,000) |
Net cash used in financing activities | (40,445) | (23,028) |
EFFECT OF EXCHANGE RATES ON CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | (1,102) | (290) |
INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | 2,079 | 6,845 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH — Beginning of period | 131,920 | 23,282 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH — End of period | $ 133,999 | $ 30,127 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | (1) Basis of Presentation Description of Business Medpace Holdings, Inc. (together with its subsidiaries, “Medpace” or the “Company”), a Delaware corporation, is a global provider of clinical research-based drug and medical device development services. The Company partners with pharmaceutical, biotechnology, and medical device companies in the development and execution of clinical trials. The Company’s drug development services focus on full service Phase I-IV clinical development services and include development plan design, project management, regulatory affairs, clinical monitoring, data management and analysis, pharmacovigilance new drug application submissions, post-marketing clinical support, laboratory services, clinical human pharmacology, imaging services, and electrocardiography reading support for clinical trials. The Company’s operations are principally based in North America, Europe, and Asia. Unaudited Interim Financial Information The interim condensed consolidated financial statements include the accounts of the Company, are prepared in conformity with U.S. generally accepted accounting principles (“GAAP”), and are unaudited. In the opinion of the Company’s management, all adjustments of a normal recurring nature necessary for a fair presentation have been reflected. Certain financial information that is normally included in annual financial statements prepared in accordance with GAAP, but that is not required for interim reporting purposes, has been omitted. The preparation of the interim condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the interim condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results and outcomes could differ from management’s estimates and assumptions. As such, the information included in this quarterly report on Form 10-Q should be read in conjunction with the Company’s audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 Share Repurchases In the first quarter of 2018, the Board of Directors approved a share repurchase program authorizing up to $50.0 million in share repurchases. In the first quarter of 2020, the Board of Directors approved an additional $50.0 million in share repurchases, bringing the total to $100.0 million authorized under the share repurchase program. During the quarter ended March 31, 2020, the Company repurchased 661,637 shares for $43.2 million. As of March 31, 2020, $56.8 million remained available under the repurchase program authorization. Repurchases under the share repurchase program are executed in the open market or negotiated transactions under trading plans put in place pursuant to Rule 10b5-1. The Company constructively retires all repurchased shares with all amounts paid in excess of par value reflected within Retained earnings in the Company’s condensed consolidated balance sheets. The repurchase program may be suspended or discontinued at any time without notice. Supplemental Cash Flow Disclosure During the three months ended March 31, 2020, the company engaged in a non-cash financing activity of $1.4 million related to share repurchases executed, but not yet paid as of March 31, 2020. Recently Adopted Accounting Standards In June 2016, the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” intended to provide financial statement users with more decision-useful information about expected credit losses and other commitments to extend credit held by the reporting entity. The standard replaces the incurred loss impairment methodology in current GAAP with one that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The guidance is effective for fiscal years beginning after December 15, 2019 with early adoption permitted. The Company adopted this standard in the first quarter of 2020 and it had no impact to the condensed consolidated financial statements. |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | (2) Net Income Per Share Basic and diluted earnings or loss per share (“EPS”) are computed using the two-class method, which is an earnings allocation that determines EPS for each class of common stock and participating securities according to dividends declared and participation rights in undistributed earnings. Restricted Stock Awards (“RSAs”) are considered participating securities because they are legally issued at the date of grant and holders are entitled to receive non-forfeitable dividends during the vesting term. The computation of diluted EPS includes additional common shares, such as unvested stock options with exercise prices less than the average market price of the Company’s common stock during the period (“in-the-money options”), which would be considered outstanding under the treasury stock method. The treasury stock method assumes that additional shares would have to be issued in cases where the exercise price of stock options is less than the value of the common stock being acquired because the cash proceeds received from the stock option holder would not be sufficient to acquire that same number of shares. The Company does not compute diluted EPS in cases where the inclusion of such additional shares would be anti-dilutive in effect. The following table sets forth the computation of basic and diluted earnings per share for the three months ended March 31, 2020 and 2019 (in thousands, except for earnings per share): Three Months Ended March 31, 2020 2019 Weighted-average shares: Common shares outstanding 36,024 35,698 RSAs 95 104 Total weighted-average shares 36,119 35,802 Earnings per common share—Basic Net income $ 28,954 $ 19,198 Less: Undistributed earnings allocated to RSAs 76 56 Net income available to common shareholders—Basic $ 28,878 $ 19,142 Net income per common share—Basic $ 0.80 $ 0.54 Basic weighted-average common shares outstanding 36,024 35,698 Effect of diluted shares 2,006 1,587 Diluted weighted-average shares outstanding 38,030 37,285 Net income per common share—Diluted $ 0.76 $ 0.51 During the three months ended March 31, 2020 and 2019, the Company had 439,405 and 0 stock options, respectively, that were excluded due to the exercise price exceeding the average fair value of the Company’s common stock during the period. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | (3) Fair Value Measurements The Company follows accounting guidance related to fair value measurements that defines fair value, establishes a framework for measuring fair value, and establishes a hierarchy for inputs used in measuring fair value. This hierarchy maximizes the use of “observable” inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. The hierarchy specifies three levels based on the inputs, as follows: Level 1: Valuations based on quoted prices in active markets for identical assets or liabilities. Level 2: Valuations based on directly observable inputs or unobservable inputs corroborated by market data. Level 3: Valuations based on unobservable inputs supported by little or no market activity representing management’s determination of assumptions of how market participants would price the assets or liabilities. The fair value of financial instruments such as cash and cash equivalents, accounts receivable and unbilled, net, accounts payable, accrued expenses and advanced billings approximate their carrying amounts due to their short term maturities. The Company does not have any recurring fair value measurements as of March 31, 2020. There were no transfers between Level 1, Level 2 or Level 3 during the three months ended March 31, 2020 or March 31, 2019. |
Contract Assets and Contract Li
Contract Assets and Contract Liabilities | 3 Months Ended |
Mar. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Contract Assets and Contract Liabilities | (4) Contract Assets and Contract Liabilities Contract assets and liabilities are reflected in the Company’s condensed consolidated balance sheets within the accounts reflected below. Contract Assets Accounts receivable represent amounts due from the Company’s customers who are concentrated primarily in the pharmaceutical, biotechnology, and medical device industries. Unbilled represents revenue recognized to date that has not been billed or is not yet contractually billable to the customer. In general, amounts become billable upon the achievement of negotiated contractual events, in accordance with predetermined payment schedules or when a reimbursable expense has been incurred. Amounts classified to unbilled are those billable to customers within one year from the respective balance sheet date. Accounts receivable and unbilled, net consisted of the following (in thousands): As of March 31, December 31, 2020 2019 Accounts receivable $ 108,852 $ 127,877 Unbilled receivables 28,059 28,368 Less: allowance for doubtful accounts (537 ) (583 ) Total accounts receivable and unbilled, net $ 136,374 $ 155,662 Contract Liabilities Advanced billings represents cash received from customers, or billed amounts per an agreed upon payment schedule, in advance of services being performed or revenue being recognized. Advanced billings consisted of the following (in thousands): As of March 31, December 31, 2020 2019 Advanced billings $ 189,562 $ 192,359 As of March 31, 2020, we had approximately $1.3 billion of performance obligations remaining to be performed for active projects. |
Intangible Assets, Net
Intangible Assets, Net | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets, Net | (5) Intangible Assets, Net Intangible assets, net consisted of the following (in thousands): As of March 31, December 31, 2020 2019 Intangible assets: Finite-lived intangible assets: Carrying amount: Customer relationships 145,051 145,051 Other 3,074 3,074 Total finite-lived intangible assets 148,125 148,125 Accumulated amortization: Customer relationships (124,375 ) (122,426 ) Other (3,043 ) (2,995 ) Total accumulated amortization (127,418 ) (125,421 ) Total finite-lived intangible assets, net 20,707 22,704 Trade name (indefinite-lived) 31,646 31,646 Total intangible assets, net $ 52,353 $ 54,350 As of March 31, 2020, estimated amortization expense of the Company’s intangible assets for each of the next five years and thereafter is as follows (in thousands): Amortization Remainder of 2020 $ 5,879 2021 5,114 2022 3,353 2023 2,199 2024 1,443 Later years 2,719 $ 20,707 |
Accrued Expenses
Accrued Expenses | 3 Months Ended |
Mar. 31, 2020 | |
Payables And Accruals [Abstract] | |
Accrued Expenses | (6) Accrued Expenses Accrued expenses consisted of the following (in thousands): As of March 31, December 31, 2020 2019 Employee compensation and benefits $ 22,383 $ 34,119 Project related reimbursable expenses 76,136 68,696 Other 8,486 6,437 Total accrued expenses $ 107,005 $ 109,252 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | (7) Debt On September 30, 2019, the Company obtained an unsecured credit facility in an aggregate principal amount up to $50.0 million (the “Credit Facility”) through its wholly owned subsidiaries, Medpace, Inc., as borrower, and Medpace IntermediateCo, Inc., as guarantor. Outstanding balances under the Credit Facility bear interest at a rate of LIBOR plus 100 basis points (1.00%). As of March 31, 2020, there were no outstanding borrowings under the Credit Facility and $0.2 million in letters of credit outstanding related to certain operating lease obligations, which are secured by the Credit Facility. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Leases | (8) Leases The Company enters into leases for real estate and equipment. Real estate leases are for our corporate office space and laboratories around the world. Real estate leases have remaining lease terms of less than 1 year to 20 years. Many of the Company’s leases include options to extend the leases on a month to month basis or for set periods for up to 20 years. Many leases also include options to terminate the leases within 1 year or per other contractual terms. The components of lease expense were as follows (in thousands): Three Months Ended March 31, 2020 2019 Operating lease cost $ 3,768 $ 3,117 Variable lease cost 886 594 Supplemental cash flow information related to the leases was as follows (in thousands): Three Months Ended March 31, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 2,600 $ 2,216 Right-of-use assets obtained in exchange for lease obligations: Operating leases 10,076 3,952 Supplemental balance sheet information related to the leases was as follows (in thousands): As of March 31, December 31, 2020 2019 Operating lease right-of-use assets $ 58,667 $ 52,152 Other current liabilities $ 12,556 $ 10,977 Operating lease liabilities 51,395 45,212 Total operating lease liabilities $ 63,951 $ 56,189 Weighted Average Remaining Lease Term (years) Operating leases 6.2 6.3 Weighted Average Discount Rate Operating leases 5.6 % 6.0 % Lease payments due related to lease liabilities as of March 31, 2020 were as follows (in thousands): Related Party Non-Related Parties Total Operating Leases Operating Leases Operating Leases Remainder of 2020 $ 4,200 $ 6,920 $ 11,120 2021 5,601 9,716 15,317 2022 5,269 6,516 11,785 2023 3,613 5,566 9,179 2024 3,613 4,294 7,907 Later years 9,666 11,339 21,005 Total lease payments 31,962 44,351 76,313 Less: imputed interest (5,755 ) (6,607 ) (12,362 ) Total $ 26,207 $ 37,744 $ 63,951 As of March 31, 2020, we have several additional leases with contractual obligations, which have not yet commenced, with future payments of $125.9 million. This includes a lease related to a corporate office under construction in Cincinnati, Ohio, which has not yet commenced, with future payments of $124.0 million. This lease will commence in fiscal year 2020 with an initial lease term of 20 years and a renewal option for two 10-year terms at prevailing market rates. |
Shareholder's Equity and Stock-
Shareholder's Equity and Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Shareholder's Equity and Stock-Based Compensation | (9) Shareholder’s Equity and Stock-Based Compensation The Company granted 312,897 awards to employees under the 2016 Incentive Award Plan during the three months ended March 31, 2020, consisting of 20,724 restricted stock awards (“RSA”) and 92,768 restricted stock units (“RSU”) vesting after four years, and 199,405 fully-vested stock option awards. The Company granted 268,617 awards to employees under the 2016 Incentive Award Plan during the three months ended March 31, 2019, consisting of 5,000 stock option awards and 164,200 RSU vesting after four years, 77,417 fully-vested stock option awards and 22,000 stock option awards with vesting in twelve equal monthly installments beginning on March 31, 2019. Award Activity The following table sets forth the Company’s stock option activity: Three Months Ended March 31, 2020 Weighted Stock Options Exercise Price Outstanding - beginning of period 3,030,071 $ 34.50 Granted 199,405 $ 107.93 Exercised (80,832 ) $ 16.61 Forfeited/Expired (38,100 ) $ 38.41 Outstanding - end of period 3,110,544 $ 39.63 Exercisable - end of period 1,563,803 $ 48.54 The following table sets forth the Company’s RSA/RSU activity: Three Months Ended March 31, 2020 Shares/Units Outstanding and unvested - beginning of period 569,770 Granted 113,492 Vested - Forfeited (5,000 ) Outstanding and unvested - end of period 678,262 Cumulative vested shares - end of period 1,913,916 Stock-based compensation expense recognized in the condensed consolidated statements of operations related to all outstanding stock based compensation awards is summarized below (in thousands): Three Months Ended March 31, 2020 2019 Total direct costs $ 2,006 $ 1,560 Selling, general and administrative 3,439 1,623 Total stock-based compensation expense $ 5,445 $ 3,183 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (10) Income Taxes The Company’s effective income tax rate was 20.6% and 22.1% for the three months ended March 31, 2020 and 2019, respectively. The Company’s effective income tax rate for the three months ended March 31, 2020 varied from the U.S. statutory rate of 21% primarily due to the impact of state taxes, which was favorably offset by previously acquired tax attributes, tax benefits related to Foreign Derived Intangible Income (FDII) and excess tax benefits recognized from share-based compensation. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (11) Commitments and Contingencies Legal Proceedings The Company is involved in legal proceedings from time to time in the ordinary course of its business, including employment claims and claims related to other business transactions. The Company cannot predict with certainty the outcome of such proceedings, but it believes that adequate reserves have been recorded and losses already recognized with respect to such proceedings, which were immaterial as of March 31, 2020 and December 31, 2019. There is a reasonable possibility that a loss exceeding amounts already recognized may be incurred related to these actions; however, the Company believes that such potential losses were immaterial as of March 31, 2020. Purchase Commitments The Company has several minimum purchase commitments for project related supplies totaling $11.8 million. In return for the commitment, Medpace receives preferential pricing. The commitments expire at various times through 2026. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | (12) Related Party Transactions Employee Loans The Company periodically extends short term loans or advances to employees, typically upon commencement of employment. Total receivables as a result of these employee advances of $0.2 million existed at March 31, 2020 and December 31, 2019, respectively, and are included in the Prepaid expenses and other current assets and Other assets line items of the condensed consolidated balance sheets, respectively, depending on the contractual repayment date. Service Agreements Cymabay Therapeutics, Inc. (“Cymabay”) Cymabay is a clinical-stage biopharmaceutical company developing therapies to treat metabolic diseases with high unmet medical need, including serious rare and orphan disorders. A Medpace employee was a member Cymabay’s board of directors from the first quarter of 2016 until his resignation in the first quarter of 2020. The Company and Cymabay entered into a MSA dated October 21, 2016. Subsequently, the Company and Cymabay have entered into several task orders for the Company to perform clinical trial related services. During the three months ended March 31, 2019, the Company recognized total revenue from Cymabay of $3.1 million LIB Therapeutics LLC and subsidiaries (“LIB”) Certain executives and employees of the Company, including the chief executive officer, are members of LIB’s board of managers. The Company entered into a MSA dated November 24, 2015 with LIB, a company that engages in research, development, marketing and commercialization of pharmaceutical drugs. Subsequently, the Company and LIB have entered into several task orders for the Company to perform clinical trial related services. During the three months ended March 31, 2020 and 2019, the Company recognized total revenue from LIB of $1.0 million and $0.7 million, respectively, in the Company’s condensed consolidated statements of operations. As of March 31, 2020 and December 31, 2019, respectively, the Company had Advanced billings from LIB of $0.4 million and $0.5 million CinRX Pharma and subsidiaries (“CinRx”) Certain executives and employees of the Company, including the chief executive officer, are members of CinRx’s board of managers and/or have equity investments in CinRx, a biotech company. The Company and CinRx have entered into several task orders for the Company to perform clinical trial related services. During the three months ended March 31, 2020 and 2019, the Company recognized total revenue from CinRx of $4.4 million and $1.4 million, respectively, in the Company’s condensed consolidated statements of operations. As of March 31, 2020 and December 31, 2019, respectively, the Company had Advanced billings from CinRx of $0.7 million and $0.9 million recorded in the condensed consolidated balance sheets. As of March 31, 2020 and December 31, 2019 the Company had Accounts receivable and unbilled, net from CinRx of $2.2 million and $0.2 million, respectively, in the condensed consolidated balance sheets. The Summit, a Dolce Hotel (“The Summit”) The Summit Hotel, located on the Medpace campus, is owned by the chief executive officer, and managed by an unrelated hospitality management entity. Medpace incurs travel lodging and meeting expenses at The Summit. During the three months ended March 31, 2020 and 2019, Medpace incurred expenses of $0.2 million and $0.1 million at The Summit, respectively. Leased Real Estate Headquarters Lease The Company entered into an operating lease for its corporate headquarters with an entity that is wholly owned by the chief executive officer of the Company. The Company has evaluated its relationship with the related party and concluded that the related party is not a variable interest entity because the Company has no direct ownership interest or relationship other than the lease. The lease for headquarters is for an initial term of twelve years through November 2022 with a renewal option for one 10-year term at prevailing market rates. The Company pays rent, taxes, insurance, and maintenance expenses that arise from the use of the property. Annual base rent for its corporate headquarters allows for adjustments to the rental rate annually for increases in the consumer price index. Operating lease cost recognized for the three months ended March 31, 2020 and 2019 was $0.5 million, respectively. The operating lease cost was allocated between Total direct costs and Selling, general and administrative in the condensed consolidated statements of operations. The Operating lease right-of-use assets at March 31, 2020 and December 31, 2019 were $ 4.8 million and $ 5.3 million, respectively, in the condensed consolidated balance sheets. The current and long-term portions of the lease liabilities at March 31, 2020 were $ 1.8 million and $ 3.0 million, and were recognized in Other current liabilities and Operating lease liabilities in the condensed consolidated balance sheets. The current and long-term portions of the lease liabilities at December 31, 2019 were $ 1.8 million and $ 3.5 million, respectively, and were recognized in Other current liabilities and Operating lease liabilities in the condensed consolidated balance sheets. In 2018, Medpace, Inc. entered into a multi-year lease agreement governing future occupancy of additional office space in Cincinnati, Ohio with an entity that is wholly owned by the Company’s chief executive officer and certain members of his immediate family. The lease expires in 2040 and the Company has two 10-year options to extend the term of the lease. The Company entered into two multi-year lease agreements governing the occupancy of space of two buildings in Cincinnati, Ohio with an entity that is wholly owned by the Company’s chief executive officer and certain members of his immediate family. The Company assumed occupancy in 2012 and the leases expire in 2027 with the Company having one 10-year option to extend the lease term. The Company pays rent, taxes, insurance, and maintenance expenses that arise from the use of the property. Annual base rent for the corporate headquarters allows for adjustments to the rental rate annually for increases in the consumer price index. The Company has determined that the leases are operating leases. Operating lease cost recognized for the three months ended March 31, 2020 and 2019 was $0.9 million, respectively. The operating lease cost was allocated between Total direct costs and Selling, general and administrative in the condensed consolidated statements of operations. The Operating lease right-of-use assets at March 31, 2020 and December 31, 2019 were $21.4 million and $21.9 million, respectively, in the condensed consolidated balance sheets. The current and long-term portions of the lease liabilities at March 31, 2020 were $2.3 million and $19.1 million, and were recognized in Other current liabilities and Operating lease liabilities in the condensed consolidated balance sheets. The current and long-term portions of the lease liabilities at December 31, 2019 were $2.3 million and $19.7 million, respectively, and were recognized in Other current liabilities and Operating lease liabilities in the condensed consolidated balance sheets. Travel Services The Company incurs expenses for travel services for company executives provided by a private aviation charter company that is owned by the chief executive officer and the executive vice president of operations of the Company (“private aviation charter”). The Company may contract directly with the private aviation charter for the use of its aircraft or indirectly through a third party aircraft management and jet charter company (the “Aircraft Management Company”). The travel services provided are primarily for business purposes, with certain personal travel paid for as part of the executives’ compensation arrangements. The Aircraft Management Company also makes the private aviation charter aircraft available to third parties. The Company incurred travel expenses of $0.2 million and $0.3 million during the three months ended March 31, 2020 and 2019, respectively, related to these travel services. These travel expenses are recorded in Selling, general and administrative in the Company’s condensed consolidated statements of operations. |
Entity Wide Disclosures
Entity Wide Disclosures | 3 Months Ended |
Mar. 31, 2020 | |
Entity Wide Disclosures [Abstract] | |
Entity Wide Disclosures | (13) Entity Wide Disclosures Revenue by Category The following table disaggregates our revenue by major source (in thousands): Three Months Ended March 31, 2020 Three Months Ended March 31, 2019 Therapeutic Area Oncology $ 69,212 $ 55,962 Other 50,569 46,869 Metabolic 36,075 35,001 Cardiology 25,899 22,650 AVAI 25,147 19,924 Central Nervous System 23,977 20,335 Total revenue $ 230,879 $ 200,741 In the current quarter and for all periods presented, the revenue associated with medical device projects, previously a separate therapeutic area, has been included in the respective therapeutic area that best aligns with the therapeutic focus of the medical device project and represents how management evaluates disaggregated revenue in its internal reporting. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Unaudited Interim Financial Information | Unaudited Interim Financial Information The interim condensed consolidated financial statements include the accounts of the Company, are prepared in conformity with U.S. generally accepted accounting principles (“GAAP”), and are unaudited. In the opinion of the Company’s management, all adjustments of a normal recurring nature necessary for a fair presentation have been reflected. Certain financial information that is normally included in annual financial statements prepared in accordance with GAAP, but that is not required for interim reporting purposes, has been omitted. The preparation of the interim condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the interim condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results and outcomes could differ from management’s estimates and assumptions. As such, the information included in this quarterly report on Form 10-Q should be read in conjunction with the Company’s audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 |
Share Repurchases | Share Repurchases In the first quarter of 2018, the Board of Directors approved a share repurchase program authorizing up to $50.0 million in share repurchases. In the first quarter of 2020, the Board of Directors approved an additional $50.0 million in share repurchases, bringing the total to $100.0 million authorized under the share repurchase program. During the quarter ended March 31, 2020, the Company repurchased 661,637 shares for $43.2 million. As of March 31, 2020, $56.8 million remained available under the repurchase program authorization. Repurchases under the share repurchase program are executed in the open market or negotiated transactions under trading plans put in place pursuant to Rule 10b5-1. The Company constructively retires all repurchased shares with all amounts paid in excess of par value reflected within Retained earnings in the Company’s condensed consolidated balance sheets. The repurchase program may be suspended or discontinued at any time without notice. Supplemental Cash Flow Disclosure During the three months ended March 31, 2020, the company engaged in a non-cash financing activity of $1.4 million related to share repurchases executed, but not yet paid as of March 31, 2020. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In June 2016, the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” intended to provide financial statement users with more decision-useful information about expected credit losses and other commitments to extend credit held by the reporting entity. The standard replaces the incurred loss impairment methodology in current GAAP with one that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The guidance is effective for fiscal years beginning after December 15, 2019 with early adoption permitted. The Company adopted this standard in the first quarter of 2020 and it had no impact to the condensed consolidated financial statements. |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of Denominators and Additional Shares that are Excluded from the Calculation of EPS | The following table sets forth the computation of basic and diluted earnings per share for the three months ended March 31, 2020 and 2019 (in thousands, except for earnings per share): Three Months Ended March 31, 2020 2019 Weighted-average shares: Common shares outstanding 36,024 35,698 RSAs 95 104 Total weighted-average shares 36,119 35,802 Earnings per common share—Basic Net income $ 28,954 $ 19,198 Less: Undistributed earnings allocated to RSAs 76 56 Net income available to common shareholders—Basic $ 28,878 $ 19,142 Net income per common share—Basic $ 0.80 $ 0.54 Basic weighted-average common shares outstanding 36,024 35,698 Effect of diluted shares 2,006 1,587 Diluted weighted-average shares outstanding 38,030 37,285 Net income per common share—Diluted $ 0.76 $ 0.51 |
Contract Assets and Contract _2
Contract Assets and Contract Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Company's Contract Asset and Contract Liability | Accounts receivable and unbilled, net consisted of the following (in thousands): As of March 31, December 31, 2020 2019 Accounts receivable $ 108,852 $ 127,877 Unbilled receivables 28,059 28,368 Less: allowance for doubtful accounts (537 ) (583 ) Total accounts receivable and unbilled, net $ 136,374 $ 155,662 Advanced billings consisted of the following (in thousands): As of March 31, December 31, 2020 2019 Advanced billings $ 189,562 $ 192,359 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets, Net | Intangible assets, net consisted of the following (in thousands): As of March 31, December 31, 2020 2019 Intangible assets: Finite-lived intangible assets: Carrying amount: Customer relationships 145,051 145,051 Other 3,074 3,074 Total finite-lived intangible assets 148,125 148,125 Accumulated amortization: Customer relationships (124,375 ) (122,426 ) Other (3,043 ) (2,995 ) Total accumulated amortization (127,418 ) (125,421 ) Total finite-lived intangible assets, net 20,707 22,704 Trade name (indefinite-lived) 31,646 31,646 Total intangible assets, net $ 52,353 $ 54,350 |
Schedule of Estimated Amortization Expense of Intangible Assets | As of March 31, 2020, estimated amortization expense of the Company’s intangible assets for each of the next five years and thereafter is as follows (in thousands): Amortization Remainder of 2020 $ 5,879 2021 5,114 2022 3,353 2023 2,199 2024 1,443 Later years 2,719 $ 20,707 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consisted of the following (in thousands): As of March 31, December 31, 2020 2019 Employee compensation and benefits $ 22,383 $ 34,119 Project related reimbursable expenses 76,136 68,696 Other 8,486 6,437 Total accrued expenses $ 107,005 $ 109,252 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Summary of Components of Lease Expense | The components of lease expense were as follows (in thousands): Three Months Ended March 31, 2020 2019 Operating lease cost $ 3,768 $ 3,117 Variable lease cost 886 594 |
Summary of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to the leases was as follows (in thousands): Three Months Ended March 31, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 2,600 $ 2,216 Right-of-use assets obtained in exchange for lease obligations: Operating leases 10,076 3,952 |
Summary of Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to the leases was as follows (in thousands): As of March 31, December 31, 2020 2019 Operating lease right-of-use assets $ 58,667 $ 52,152 Other current liabilities $ 12,556 $ 10,977 Operating lease liabilities 51,395 45,212 Total operating lease liabilities $ 63,951 $ 56,189 Weighted Average Remaining Lease Term (years) Operating leases 6.2 6.3 Weighted Average Discount Rate Operating leases 5.6 % 6.0 % |
Schedule of Lease Payments Due Related To Lease Liabilities | Lease payments due related to lease liabilities as of March 31, 2020 were as follows (in thousands): Related Party Non-Related Parties Total Operating Leases Operating Leases Operating Leases Remainder of 2020 $ 4,200 $ 6,920 $ 11,120 2021 5,601 9,716 15,317 2022 5,269 6,516 11,785 2023 3,613 5,566 9,179 2024 3,613 4,294 7,907 Later years 9,666 11,339 21,005 Total lease payments 31,962 44,351 76,313 Less: imputed interest (5,755 ) (6,607 ) (12,362 ) Total $ 26,207 $ 37,744 $ 63,951 |
Shareholder's Equity and Stoc_2
Shareholder's Equity and Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Schedule of Stock Option Activity | The following table sets forth the Company’s stock option activity: Three Months Ended March 31, 2020 Weighted Stock Options Exercise Price Outstanding - beginning of period 3,030,071 $ 34.50 Granted 199,405 $ 107.93 Exercised (80,832 ) $ 16.61 Forfeited/Expired (38,100 ) $ 38.41 Outstanding - end of period 3,110,544 $ 39.63 Exercisable - end of period 1,563,803 $ 48.54 |
Schedule of RSA/RSU Activity | The following table sets forth the Company’s RSA/RSU activity: Three Months Ended March 31, 2020 Shares/Units Outstanding and unvested - beginning of period 569,770 Granted 113,492 Vested - Forfeited (5,000 ) Outstanding and unvested - end of period 678,262 Cumulative vested shares - end of period 1,913,916 |
Summary of Stock-Based Compensation Expense Recognized in Statements of Operations Related to All Outstanding Stock Based Compensation Awards | Stock-based compensation expense recognized in the condensed consolidated statements of operations related to all outstanding stock based compensation awards is summarized below (in thousands): Three Months Ended March 31, 2020 2019 Total direct costs $ 2,006 $ 1,560 Selling, general and administrative 3,439 1,623 Total stock-based compensation expense $ 5,445 $ 3,183 |
Entity Wide Disclosures (Tables
Entity Wide Disclosures (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Entity Wide Disclosures [Abstract] | |
Summary of Revenue by Major Source | The following table disaggregates our revenue by major source (in thousands): Three Months Ended March 31, 2020 Three Months Ended March 31, 2019 Therapeutic Area Oncology $ 69,212 $ 55,962 Other 50,569 46,869 Metabolic 36,075 35,001 Cardiology 25,899 22,650 AVAI 25,147 19,924 Central Nervous System 23,977 20,335 Total revenue $ 230,879 $ 200,741 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Basis Of Presentation [Line Items] | |||
Repurchases of shares, value | $ 41,776,000 | $ 0 | |
Share Repurchase Program | |||
Basis Of Presentation [Line Items] | |||
Stock repurchase program, authorized amount | 100,000,000 | ||
Stock repurchase program, additional amount authorized | $ 50,000,000 | ||
Repurchases of shares | 661,637 | ||
Repurchases of shares, value | $ 43,200,000 | ||
Remaining amount of repurchase program | 56,800,000 | ||
Non cash activity related share repurchase program | $ 1,400,000 | ||
Share Repurchase Program | Maximum | |||
Basis Of Presentation [Line Items] | |||
Stock repurchase program, authorized amount | $ 50,000,000 |
Net Income Per Share - Schedule
Net Income Per Share - Schedule of Reconciliation of Denominators and Additional Shares that are Excluded from the Calculation of EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Weighted-average shares: | ||
Basic weighted-average common shares outstanding | 36,024 | 35,698 |
Total weighted-average shares | 36,119 | 35,802 |
Earnings per common share—Basic | ||
Net income | $ 28,954 | $ 19,198 |
Net income available to common shareholders—Basic | $ 28,878 | $ 19,142 |
Net income per common share—Basic | $ 0.80 | $ 0.54 |
Basic weighted-average common shares outstanding | 36,024 | 35,698 |
Effect of diluted shares | 2,006 | 1,587 |
Diluted weighted-average shares outstanding | 38,030 | 37,285 |
Net income per common share—Diluted | $ 0.76 | $ 0.51 |
RSAs | ||
Weighted-average shares: | ||
Basic weighted-average common shares outstanding | 95 | 104 |
Earnings per common share—Basic | ||
Less: Undistributed earnings allocated to RSAs | $ 76 | $ 56 |
Basic weighted-average common shares outstanding | 95 | 104 |
Common Stock | ||
Weighted-average shares: | ||
Basic weighted-average common shares outstanding | 36,024 | 35,698 |
Earnings per common share—Basic | ||
Basic weighted-average common shares outstanding | 36,024 | 35,698 |
Net Income Per Share - Addition
Net Income Per Share - Additional Information (Details) - shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Stock Options | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from computation of diluted EPS | 439,405 | 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | ||
Fair value measurements transfers between level 1, level 2 or level 3 | $ 0 | $ 0 |
Contract Assets and Contract _3
Contract Assets and Contract Liabilities - Summary of Accounts Receivable and Unbilled, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Revenue From Contract With Customer [Abstract] | ||
Accounts receivable | $ 108,852 | $ 127,877 |
Unbilled receivables | 28,059 | 28,368 |
Less: allowance for doubtful accounts | (537) | (583) |
Total accounts receivable and unbilled, net | $ 136,374 | $ 155,662 |
Contract Assets and Contract _4
Contract Assets and Contract Liabilities - Summary of Advanced Billings (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Revenue From Contract With Customer [Abstract] | ||
Advanced billings | $ 189,562 | $ 192,359 |
Contract Assets and Contract _5
Contract Assets and Contract Liabilities - Additional Information (Details) $ in Billions | Mar. 31, 2020USD ($) |
Revenue From Contract With Customer [Abstract] | |
Performance obligations remaining to be performed | $ 1.3 |
Intangible Assets, Net - Schedu
Intangible Assets, Net - Schedule of Intangible Assets, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Finite-lived intangible assets: | ||
Total finite-lived intangible assets | $ 148,125 | $ 148,125 |
Accumulated amortization: | ||
Total accumulated amortization | (127,418) | (125,421) |
Total finite-lived intangible assets, net | 20,707 | 22,704 |
Trade name (indefinite-lived) | 31,646 | 31,646 |
Total intangible assets, net | 52,353 | 54,350 |
Customer Relationships | ||
Finite-lived intangible assets: | ||
Total finite-lived intangible assets | 145,051 | 145,051 |
Accumulated amortization: | ||
Total accumulated amortization | (124,375) | (122,426) |
Other | ||
Finite-lived intangible assets: | ||
Total finite-lived intangible assets | 3,074 | 3,074 |
Accumulated amortization: | ||
Total accumulated amortization | $ (3,043) | $ (2,995) |
Intangible Assets, Net - Sche_2
Intangible Assets, Net - Schedule of Estimated Amortization Expense of Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Remainder of 2020 | $ 5,879 | |
2021 | 5,114 | |
2022 | 3,353 | |
2023 | 2,199 | |
2024 | 1,443 | |
Later years | 2,719 | |
Total finite-lived intangible assets, net | $ 20,707 | $ 22,704 |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Accrued Liabilities And Other Liabilities [Abstract] | ||
Employee compensation and benefits | $ 22,383 | $ 34,119 |
Project related reimbursable expenses | 76,136 | 68,696 |
Other | 8,486 | 6,437 |
Total accrued expenses | $ 107,005 | $ 109,252 |
Debt - Additional Information (
Debt - Additional Information (Details) - Credit Facility - USD ($) | Sep. 30, 2019 | Mar. 31, 2020 |
Debt Instrument [Line Items] | ||
Debt instrument, basis points | 1.00% | |
Outstanding borrowings | $ 0 | |
Outstanding letters of credit | $ 200,000 | |
Maximum | ||
Debt Instrument [Line Items] | ||
Debt instrument, principal amount | $ 50,000,000 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($)Option | |
Lessee Lease Description [Line Items] | |
Lease not yet commenced, future payments | $ 125.9 |
Real Estate and Equipment | |
Lessee Lease Description [Line Items] | |
Lease renewal term, operating lease | 20 years |
Description of option to extend the lease | Many of the Company’s leases include options to extend the leases on a month to month basis or for set periods for up to 20 years. |
Operating lease, existense of option to extend | true |
Description of option to terminate the lease | Many leases also include options to terminate the leases within 1 year or per other contractual terms. |
Lessee, operating lease, existence of option to terminate | true |
Real Estate and Equipment | Minimum | |
Lessee Lease Description [Line Items] | |
Remaining lease term, operating lease | 1 year |
Real Estate and Equipment | Maximum | |
Lessee Lease Description [Line Items] | |
Remaining lease term, operating lease | 20 years |
Operating lease, options to terminate lease term | 1 year |
Corporate Offices | |
Lessee Lease Description [Line Items] | |
Initial term of operating lease not yet commenced | 20 years |
Lease not yet commenced, option to extend | true |
Lease not yet commenced, option to extend description | renewal option for two 10-year terms at prevailing market rates |
Operating lease not yet commenced, renewal term | 10 years |
Operating lease not yet commenced, number of renewal option | Option | 2 |
Corporate Offices | Cincinnati, Ohio | Leased Real Estate | |
Lessee Lease Description [Line Items] | |
Lease not yet commenced, future payments | $ 124 |
Leases - Summary of Components
Leases - Summary of Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Lease Cost [Abstract] | ||
Operating lease cost | $ 3,768 | $ 3,117 |
Variable lease cost | $ 886 | $ 594 |
Leases - Summary of Supplementa
Leases - Summary of Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 2,600 | $ 2,216 |
Right-of-use assets obtained in exchange for lease obligations: | ||
Operating leases | $ 10,076 | $ 3,952 |
Leases - Summary of Supplemen_2
Leases - Summary of Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Assets And Liabilities Lessee [Abstract] | |||
Operating lease right-of-use assets | $ 58,667 | $ 52,152 | $ 52,152 |
Other current liabilities | $ 12,556 | $ 10,977 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesCurrent | us-gaap:OtherLiabilitiesCurrent | |
Operating lease liabilities | $ 51,395 | $ 45,212 | $ 45,212 |
Total operating lease liabilities | $ 63,951 | $ 56,189 | |
Weighted Average Remaining Lease Term (years) | |||
Operating leases | 6 years 2 months 12 days | 6 years 3 months 18 days | |
Weighted Average Discount Rate | |||
Operating leases | 5.60% | 6.00% |
Leases - Schedule of Lease Paym
Leases - Schedule of Lease Payments Due Related To Lease Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Mar. 31, 2019 |
Operating Lease Liabilities Payments Due [Line Items] | ||
Remainder of 2020 | $ 11,120 | |
2021 | 15,317 | |
2022 | 11,785 | |
2023 | 9,179 | |
2024 | 7,907 | |
Later years | 21,005 | |
Total lease payments | 76,313 | |
Less: imputed interest | (12,362) | |
Total | 63,951 | $ 56,189 |
Related Party | ||
Operating Lease Liabilities Payments Due [Line Items] | ||
Remainder of 2020 | 4,200 | |
2021 | 5,601 | |
2022 | 5,269 | |
2023 | 3,613 | |
2024 | 3,613 | |
Later years | 9,666 | |
Total lease payments | 31,962 | |
Less: imputed interest | (5,755) | |
Total | 26,207 | |
Non-Related Party | ||
Operating Lease Liabilities Payments Due [Line Items] | ||
Remainder of 2020 | 6,920 | |
2021 | 9,716 | |
2022 | 6,516 | |
2023 | 5,566 | |
2024 | 4,294 | |
Later years | 11,339 | |
Total lease payments | 44,351 | |
Less: imputed interest | (6,607) | |
Total | $ 37,744 |
Shareholder's Equity and Stoc_3
Shareholder's Equity and Stock-Based Compensation - Additional Information (Details) - shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock options granted | 199,405 | |
2016 Incentive Award Plan | Granted to Employees | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Awards granted to employees | 312,897 | 268,617 |
2016 Incentive Award Plan | Vesting After Four Years | Restricted Stock Awards (RSA) | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Shares granted | 20,724 | |
Award vesting period | 4 years | |
2016 Incentive Award Plan | Vesting After Four Years | Stock Options | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock options granted | 5,000 | |
Award vesting period | 4 years | |
2016 Incentive Award Plan | Vesting After Four Years | Restricted Stock Units (RSU) | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Shares granted | 92,768 | 164,200 |
Award vesting period | 4 years | 4 years |
2016 Incentive Award Plan | Fully-vested Awards | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock options granted | 199,405 | 77,417 |
2016 Incentive Award Plan | Vesting in Twelve Equal Monthly Installments | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock options granted | 22,000 |
Shareholder's Equity and Stoc_4
Shareholder's Equity and Stock-Based Compensation - Schedule of Stock Option Activity (Details) | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Equity [Abstract] | |
Number of Stock Options, Outstanding - beginning of period | shares | 3,030,071 |
Number of Stock Options, Granted | shares | 199,405 |
Number of Stock Options, Exercised | shares | (80,832) |
Number of Stock Options, Forfeited/Expired | shares | (38,100) |
Number of Stock Options, Outstanding - end of period | shares | 3,110,544 |
Number of Stock Options, Exercisable - end of period | shares | 1,563,803 |
Weighted Average Exercise Price, Outstanding - beginning of Period | $ / shares | $ 34.50 |
Weighted Average Exercise Price, Granted | $ / shares | 107.93 |
Weighted Average Exercise Price, Exercised | $ / shares | 16.61 |
Weighted Average Exercise Price, Forfeited/Expired | $ / shares | 38.41 |
Weighted Average Exercise Price, Outstanding - end of period | $ / shares | 39.63 |
Weighted Average Exercise Price, Exercisable - end of period | $ / shares | $ 48.54 |
Shareholder's Equity and Stoc_5
Shareholder's Equity and Stock-Based Compensation - Schedule of RSA/RSU Activity (Details) - RSA/RSU | 3 Months Ended |
Mar. 31, 2020shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Outstanding and unvested - beginning of period | 569,770 |
Granted | 113,492 |
Vested | 0 |
Forfeited | (5,000) |
Outstanding and unvested - end of period | 678,262 |
Cumulative vested shares - end of period | 1,913,916 |
Shareholder's Equity and Stoc_6
Shareholder's Equity and Stock-Based Compensation - Summary of Stock-Based Compensation Expense Recognized in Statements of Operations Related to All Outstanding Stock Based Compensation Awards (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | $ 5,445 | $ 3,183 |
Total Direct Costs | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | 2,006 | 1,560 |
Selling, General and Administrative | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | $ 3,439 | $ 1,623 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 20.60% | 22.10% |
U.S. statutory rate | 21.00% | 21.00% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Commitments And Contingencies Disclosure [Abstract] | |
Minimum purchase commitments for project related supplies | $ 11.8 |
Minimum purchase commitments, description | The Company has several minimum purchase commitments for project related supplies totaling $11.8 million. In return for the commitment, Medpace receives preferential pricing. The commitments expire at various times through 2026. |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020USD ($)RenewalOptionAgreementBuilding | Mar. 31, 2019USD ($) | Dec. 31, 2018RenewalOption | Dec. 31, 2019USD ($) | |
Related Party Transaction [Line Items] | ||||
Advanced billings | $ 1,100 | $ 3,000 | ||
Accounts receivable and unbilled, net | 2,800 | 1,900 | ||
Operating lease cost | 3,768 | $ 3,117 | ||
Operating lease right-of-use assets | 58,667 | 52,152 | 52,152 | |
Current portion of lease liability | 12,556 | 10,977 | ||
Long-term portion of lease liabilities | 51,395 | 45,212 | 45,212 | |
Employee Loans | Prepaid Expenses and Other Current Assets and Other Assets | ||||
Related Party Transaction [Line Items] | ||||
Employee advances receivables | 200 | 200 | ||
Service Agreements | Cymabay | ||||
Related Party Transaction [Line Items] | ||||
Advanced billings | 1,600 | |||
Accounts receivable and unbilled, net | 1,400 | |||
Service Agreements | Cymabay | Revenue Net | ||||
Related Party Transaction [Line Items] | ||||
Revenue with related parties | 3,100 | |||
Service Agreements | LIB | ||||
Related Party Transaction [Line Items] | ||||
Advanced billings | 400 | 500 | ||
Accounts receivable and unbilled, net | 600 | 300 | ||
Service Agreements | LIB | Revenue Net | ||||
Related Party Transaction [Line Items] | ||||
Revenue with related parties | 1,000 | 700 | ||
Service Agreements | CinRx Pharma and Subsidiaries | ||||
Related Party Transaction [Line Items] | ||||
Advanced billings | 700 | 900 | ||
Accounts receivable and unbilled, net | 2,200 | 200 | ||
Service Agreements | CinRx Pharma and Subsidiaries | Revenue Net | ||||
Related Party Transaction [Line Items] | ||||
Revenue with related parties | 4,400 | 1,400 | ||
Service Agreements | The Summit | ||||
Related Party Transaction [Line Items] | ||||
Expenses incurred | $ 200 | 100 | ||
Leased Real Estate | Chief Executive Officer | ||||
Related Party Transaction [Line Items] | ||||
Term of lease | 12 years | |||
Lease expiration period | 2022-11 | |||
Number of lease renewal, 10-year option | RenewalOption | 1 | |||
Lease term upon renewal | 10 years | |||
Leased Real Estate | Chief Executive Officer | Direct Costs and Selling, General And Administrative | ||||
Related Party Transaction [Line Items] | ||||
Operating lease cost | $ 500 | 500 | ||
Leased Real Estate | Chief Executive Officer And Immediate Family | ||||
Related Party Transaction [Line Items] | ||||
Number of lease renewal, 10-year option | RenewalOption | 1 | 2 | ||
Lease term upon renewal | 10 years | 10 years | ||
Lease expiration year | 2027 | 2040 | ||
Number of lease agreements | Agreement | 2 | |||
Number of buildings | Building | 2 | |||
Lease occupancy year | 2012 | |||
Leased Real Estate | Chief Executive Officer And Immediate Family | Direct Costs and Selling, General And Administrative | ||||
Related Party Transaction [Line Items] | ||||
Operating lease cost | $ 900 | 900 | ||
Leased Real Estate | Operating Lease Right-of-Use Assets | Chief Executive Officer | ||||
Related Party Transaction [Line Items] | ||||
Operating lease right-of-use assets | 4,800 | 5,300 | ||
Leased Real Estate | Operating Lease Right-of-Use Assets | Chief Executive Officer And Immediate Family | ||||
Related Party Transaction [Line Items] | ||||
Operating lease right-of-use assets | 21,400 | 21,900 | ||
Leased Real Estate | Other Current Liabilities | Chief Executive Officer | ||||
Related Party Transaction [Line Items] | ||||
Current portion of lease liability | 1,800 | 1,800 | ||
Leased Real Estate | Other Current Liabilities | Chief Executive Officer And Immediate Family | ||||
Related Party Transaction [Line Items] | ||||
Current portion of lease liability | 2,300 | 2,300 | ||
Leased Real Estate | Operating Lease Liabilities | Chief Executive Officer | ||||
Related Party Transaction [Line Items] | ||||
Long-term portion of lease liabilities | 3,000 | 3,500 | ||
Leased Real Estate | Operating Lease Liabilities | Chief Executive Officer And Immediate Family | ||||
Related Party Transaction [Line Items] | ||||
Long-term portion of lease liabilities | 19,100 | $ 19,700 | ||
Travel Services | Chief Executive Officer | ||||
Related Party Transaction [Line Items] | ||||
Travel expenses with related party | $ 200 | $ 300 |
Entity Wide Disclosures - Summa
Entity Wide Disclosures - Summary of Revenue by Major Source (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 230,879 | $ 200,741 |
Oncology | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 69,212 | 55,962 |
Other | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 50,569 | 46,869 |
Metabolic | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 36,075 | 35,001 |
Cardiology | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 25,899 | 22,650 |
AVAI | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 25,147 | 19,924 |
Central Nervous System | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 23,977 | 20,335 |
Revenue Net | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 230,879 | $ 200,741 |